HDFC net rises 39% to ~28.46 bn

Mortgage lender to pay out ~20 per share dividend for 2017-18

Mortgage major Housing Development Finance Corporation’s (HDFC) net profit for the fourth quarter ended March 2018 rose 39 per cent to ~28.46 billion on the back of a healthy net interest margin. The company had posted a net profit of ~20.44 billion in January-March 2017. Its net profit for the year ended March 2018 rose to ~121.64 billion from ~74.43 billion in the year-ago period.

The HDFC stock closed 1.44 per cent higher at ~1,884 per share on the Bombay Stock Exchange. HDFC’s board recommended payment of final dividend of ~16.50 per equity share for the year ended March 31, 2018, taking the total dividend for FY18 to ~20 per share. The total dividend payout in FY17 was ~18 per share. The net interest income (NII) for the reporting quarter rose by 13 per cent to ~32.11 billion from ~28.52 billion in the corresponding quarter of the previous year (FY17). The NII for FY18 grew by 14 per cent to ~113.13 billion from ~99.54 billion in the previous year.

The net interest margin for the year ended March 31, 2018, was 4 per cent.

HDFC said in a statement its loan book stood at ~3.59 trillion on March 31, 2018, up from ~2.96 trillion a year ago.

Total individual loan disbursements grew by 29 per cent during the year ended March 31, 2018. The average size of individual loans stood at ~2.64 million.

The company increased its focus on affordable housing by sanctioning loans to the economically weaker section (EWS) and low income group (LIG). HDFC on average has been approving 8,200 loans per month to the EWS and LIG segments, with approvals at approximately ~13.12 billion. The average home loans to the EWS and LIG segments stood at ~1.02 million and ~1.74 million, respectively.

HDFC’s gross non-performing loans on March 31, 2018, stood at 1.11 per cent of its loan portfolio. Non-performing individual loans were 0.64 per cent and non-individual loans were 2.18 per cent. HDFC’s capital adequacy ratio was 19.2 per cent, of which Tier I capital was 17.3 per cent and Tier II capital 1.9 per cent.